IPO-bound Swiggy, despite posting a strong jump in revenue in financial year (FY) 2024, was behind Zomato, its arch rival, the company’s annual report accessed by Moneycontrol revealed.
On a gross order value (GOV) basis – which totaled to around Rs 56,924 crore between the two companies in FY24 – Swiggy had a market share of 43 percent in the food delivery industry and Zomato was the market leader with a 57 percent share in FY24.
While Swiggy improved its top line, it still incurred losses in the financial year gone by as opposed to Zomato which generated a profit during the year.
Speaking at the Moneycontrol Startup Conclave on August 9, Swiggy chief Sriharsha Majety had highlighted the pros and cons of having a publicly listed rival.
“Having a listed competitor is both good and bad. We don’t have to explain what on-demand is, what the gig worker economy means and what hyperlocal is – all of these are the positives. The negative is that quarter-on-quarter you are going to be compared on the trajectory,” Majety said.
“We definitely want to make sure that it is a good trajectory and there are many quarters that are good and some that are off – it (having a listed competitor) is a net positive for sure.”
Swiggy Instamart Vs Blinkit
Like food delivery, Swiggy Instamart was a laggard when it came to quick commerce.
However, once Swiggy goes public later this year, the company will still be a lucrative bet for investors.
"Public investors are smart. They look at every company for what it is capable of and what it is worth. And also investors want diversification. So everybody doesn't want to bet on just one asset or company in a particular space. I think investors will be discerning," Prashanth Prakash, partner at Accel, said at the Moneycontrol Startup Conclave on August 9.
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